Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10b
ACTION ITEM
Date of Meeting
February 14, 2023
DATE: February 6, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director of Airport Operations
Eileen Francisco, Interim Chief Development Officer
SUBJECT: S. 160
th
St TNC Lot Improvements (CIP# 801186)
Amount of this request:
$6,083,000
Total estimated project cost:
$7,300,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise, award, and execute a
construction contract, and authorize an additional $6,083,000 for the South 160th Street TNC Lot
Improvement Project at Seattle-Tacoma International Airport. The total estimated project cost
is $7,300,000.
EXECUTIVE SUMMARY
The Port-owned South 160th Street Ground Transportation (GT) holding lot is used by taxis and
Transportation Network Companies (TNC) such as Uber and Lyft for vehicle staging. Currently,
permanent lighting is installed in the holding lot area used by taxis, as opposed to the TNC lot
area which has temporary diesel-powered lighting. Approval of this project would install
permanent lighting systems, ten new electric vehicle (EV) chargers for the TNC fleet partially
funded by a Department of Commerce (DOC) grant, and four permanent restroom facilities to
support TNC operations.
JUSTIFICATION
This project will support the following Century Agenda goals:
• To advance this region as a leading tourism destination and business gateway by meeting
the region’s air transportation needs by delivering vital facilities and infrastructure in a
sustainable and cost-effective manner.
• To be the greenest and most energy-efficient port in North America by reducing air
pollutants and carbon emissions.
• To become a model for equity, diversity, and inclusion by increasing utilization of Women
and Minority Business Enterprise (WMBE) and Disadvantage Business Enterprise (DBE)
firms and eliminating disparity of access to opportunities.
COMMISSION AGENDA – Action Item No. 10b Page 2 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
Project staff along with the Diversity in Contracting Department have set a women and minority
business enterprise (WMBE) aspirational goal of 10% for this construction contract.
DETAILS
The project will install ten EV chargers utilizing a $1.2 million grant awarded by the DOC that
partially funds the installation of the EV chargers and the required electrical infrastructure
upgrades. A lease will be required between the Port and the third-party entity EVgo who will
own, operate and maintain the EV chargers. The lease may require future authorization by the
Commission once negotiations are completed, and the DOC has approved the terms.
The Port has an agreement with the TNC partners to improve the operating conditions for drivers
and support sustainability improvements between the parties. The EV chargers and permanent
restrooms support this agreement and equity goals and helps deliver sustainability
improvements as documented in a December 10, 2020, letter from the Managing Director of
Aviation to the TNC partners.
Scope of Work
The project will install permanent lighting systems in the TNC portion of the GT lot and replace
the existing diesel-powered temporary light plants. The project will also add 10 EV charging
stations and their supporting infrastructure on the TNC side, which supports the Port goal to
reduce greenhouse gas emissions from passenger ground transportation, including the TNC fleet.
The project will also install four permanent restrooms for TNC operators, security cameras for
operational awareness, and expand the landscaping areas throughout the GT lot as required by
permitting and current landscaping standards.
Schedule
Construction Notice to Proceed
2023 Quarter 2
In-use date
2024 Quarter 2
This Request
Total Project
Design
$0
$1,417,000
Construction
$5,883,000
$5,883,000
Total
$5,883,000
$7,300,000
COMMISSION AGENDA – Action Item No. 10b Page 3 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 –Do Not proceed with the Project.
Cost Implications: $350,000
Pros:
(1) No additional capital investment required.
Cons:
(1) TNC operations continue to be supported by temporary lighting and restroom facilities.
(2) The Port does not take advantage of a $1.2 Million grant opportunity to support electric
vehicles.
(3) Operation and maintenance costs are not reduced due to the continuation of temporary
facilities.
(4) Temporary lighting facilities continue to generate greenhouse gas emissions.
(5) The project costs to date would need to be expensed.
This is not the recommended alternative.
Alternative 2 – Provide Permanent Lighting and Electric Vehicle Chargers
Cost Implications: $5,600,000
Pros:
(1) Lower capital investment required.
(2) The Port takes advantage of a $1.2 Million grant opportunity to support electric
vehicles.
(3) Operation and maintenance costs are reduced by the elimination of temporary lighting
facilities.
Cons:
(1) TNC operations continue to be supported by temporary restroom facilities, an area of
concern with the current operating agreement between the Port and the TNC
operators.
This is not the recommended alternative.
Alternative 3 – Provide Permanent Lighting, Electric Vehicle Chargers, and Restrooms
Cost Implications: $7,300,000
Pros:
(1) TNC operations are supported by permanent lighting and restroom facilities, addressing
an area of concern with the current operating agreement.
(2) The Port takes advantage of a $1.2 Million grant opportunity to support electric
vehicles.
(3) Operation and maintenance costs are reduced by the elimination of temporary lighting
facilities.
COMMISSION AGENDA – Action Item No. 10b Page 4 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Greater capital investment required.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$3,728,000
$0
$3,728,000
Previous changes
$2,858,000
$714,000
$3,572,000
Current change
$204,000
$(204,000)
$0,000
Revised estimate
$6,790,000
$510,000
$7,300,000
AUTHORIZATION
Previous authorizations
$1,417,000
$0
$1,417,000
Current request for authorization
$5,373,000
$510,000
$5,883,000
Total authorizations, including this request
$6,790,000
$510,000
$7,300,000
Annual Budget Status and Source of Funds
This project (CIP #C801186) was included in the 2023-2027 capital budget and plan of finance
with a budget of $6,586,000. A capital budget increase (no change to total project budget) of
$204,000 was transferred from the Non-Aeronautical Allowance (CIP #C800754) for a total
revised capital budget of $6,790,000 resulting in zero net change to the Aviation capital budget.
The funding sources will be grants, Airport Development Fund (ADF)and revenue bonds. The
Department of Commerce grant will reimburse up to $1,229,322.42 of the project costs with up
to $757,262 allocated for the Port-owned electrical infrastructure, and up to $472,060 for the
tenant owned EV chargers. The expense costs are included in the 2023 operating budget and
include the portion of the grant reimbursement for the tenant owned EV chargers, plant
establishment period costs for the landscaping improvements, and limited soft costs for staff
support.
Financial Analysis and Summary
Project cost for analysis
$7,300,000
Business Unit (BU)
Ground Transportation
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease.
IRR/NPV (if relevant)
N/A – No additional revenues are anticipated from this
investment.
CPE Impact
N/A
COMMISSION AGENDA – Action Item No. 10b Page 5 of 5
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
As a result of this project, we anticipate moderate impacts resulting in increased annual O&M
costs. The new restrooms will add additional costs for custodial services and maintenance. The
expanded landscaping will also result in a minor increase to landscape maintenance costs.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
September 28, 2021 – The Commission authorized $1,417,000 supporting design and
execution of utility agreements.